ly and collaboratively to achieve that objective. This conference presents a unique opportunity to build consensus, strengthen partnerships, and lay the foundation for a more resilient financial system that effectively serves the needs of the Liberian people. Over the next three days, we will engage in technical presentations, policy discussions, and stakeholder dialogues to build to one build a shared understanding of the nature, the scope and causes of NPLs in Liberia. Two, assess existing regulatory, supervisory, legal and judicial frameworks for NPR prevention and resolution. Three, identify practical reforms to strengthen credit risk management, debt recovery, collateral enforcement, and credit discipline. Four, learn from regional and international best practices and adapt them to Liberia's unique circumstance. And five, develop a national NPR resolution road map with clear responsibilities, timelines, and commitments. Our goal is not simple to identify problems, but to develop solutions. Solutions that strengthen financial stability. Solutions that expand access to finance, solutions that promote investment, solutions that create job, and solutions that support inclusive growth. Distinguished delegates, the NPR challenge cannot be solved by regulators alone, by banks alone or by the judiciary alone. It requires partnership, cooperation and shared ownership among all stakeholders, financial institutions, borrowers, development partners and the civil society. By the conclusion, we expect tangible outcomes, namely a conference communicate, an MPL resolution policy road map and a reform action plan. These deliverables will guide our collective efforts to reduce NPL's, strengthen resilience, modernize credit infrastructure, and expand access to finance. Distinguished ladies and gentlemen, we acknowledge that the challenge before us is significant, but so too is the opportunity if we strengthen credit discipline, recalibrate our risk management practices, improve our legal and institutional frameworks, modernize our financial infrastructure, and build stronger collaborations, we can create a financial system that is inclusive, resist resilient and better position to support Liberia's development aspirations. Let this conference mark a turning point, a new chapter in Liberia's financial sector development, a chapter defined by stronger banks, healthier balance sheets, greater financial inclusion, expanded access to credit, vibrant private sector activity, increased investment, and more jobs for our people. Importantly, this conference aligns with the government of Liberia's broader development objectives, including private sector development, financial sector modernization, economic diversification, and job creation. The ultimate measure of success of this conference will not simply be by lower ratios. Success will be reflected in greater access to credit, better repayment terms and performance, stronger businesses, expanded investment, increase employment opportunities and improve livelihoods for our people. Please allow me at this juncture to express our profound appreciations to his excellency President Joseph Jubakar senior whose leadership and commitment to economic reforms continue to inspire confidence in Liberia's future. I also extend sincere gratitude to the World Bank Group, the Liberia Investment Finance and Trade Project, the International Monetary Fund, the African Development Bank, Every Ex Bank, our development partners to include the US Embassy, the U the European Union, members of the judiciary, lawmakers, leaders of fin of the financial sector and all institutions represented here today for their invaluable support, encouragement and engagement. Special thanks are due to the conference committee, the organizing team, technical experts, moderators, rapurers, and staff of the Central Bank of Liberia whose dedication and hard work have made this conference possible. As we embark on these deliberations, let me leave you with this reflection. Resolving NPL non-performing loans is not only a banking sector objective. It is a national development imperative. It is about creating jobs, expanding opportunities and building a more prosperous and inclusive Liberia. with these remarks and on behalf of the board of governors, the management and staff of the central bank of Liberia, our government partners, the ministry of finance and development planning, the minister of commerce and industry, the world bank group. I warmly welcome you all to this national non-performing loans conference. May our discussions be fruitful and may our outcomes be transformative. Thank you and may God bless our president and bless the Republic of Liberia. Thank you. Thank you, Governor. I think the governor deserves another round of applause, please. He's a man with a vision on a mission. And our goal says is is not to identify only the problems but to find solutions to those vexing problems. We need the collaboration of all of us, the banks, the business people, the government, everyone, the market women to succeed. And that is why of course we collaborating with the ministry of finance and development planning on this all important exercise and if I can recall it was the minister of finance who said and minister you can correct me if I'm wrong that macroeconomic stability must translate into job creation. You said that didn't you? Okay. And so >> if he didn't say that, he would say no. >> So so so we've achieved we've achieved all the macroeconomic fundamentals and we haven't yet achieved job creation. But I can say with all confident that we are on the verge of doing that with the launch of this historic event because following this event we will have greater access to finance and with greater access to finance we'll have greater investment within the economy and greater jobs as well. Having said that, I will now I have the honor to now invite the Minister of Finance to make special remarks. Minister, >> give it up for the minister, please. His Excellency Joseph New Yuman Barka Senior, President of the Republic of Liberia, the Honorable Richard Name, Speaker of the National Legislature, members of the National Legislature here present, members of the diplomatic CP, the Executive Governor of the Central Bank of Liberia, Mr. Henry Faramo and members of the board of governors, cabinet colleagues here present, representatives of development partners here present, chief executive officers and board members of financial institutions, former governors, Sally and others here present, members of the business community, Distinguished guests, members of the fourth estate, ladies and gentlemen, it is a privilege to join you at this important national conference on the resolution of non-performing loans. Let me first commend the Central Bank of Liberia for convening this timely and consequential forum, bringing together policy makers, regulators, financial institutions, the judiciary, development partners, and the private sector to confront an issue that goes to the very heart of Liberia's economic development At first glance, non-performing loans or NPLs may sound like a technical banking issue, something for bankers, accountants, regulators, and economists to worry about. But NPLs are not about are not just about banks. They are about businesses. They are about jobs. They are about whether a farmer can borrow to expand production, whether a Liberian entrepreneur can obtain financing to open another branch, whether a woman running a small business can access working capital, and whether a long a young Liberian with a brilliant idea can transform that idea into an enterprise employing other young Liberians. So when we talk about resolving non-performing loans, we are ultimately talking about unlocking the dose of economic opportunity. NPLs are a mirror of the economy. Ladies and gentlemen, the conference documents presents a sobering picture. While the banking sector's NPL ratio reportedly declined from approximately 19.1% at the end of 2024 to about 12.9% at the end of 2025. The stock of distress assets remains substantial. We should welcome the improvement, but we should not confuse improvement with victory. Behind every percentage point is real money. money that could otherwise be financing agriculture, manufacturing, construction, trade, technology, housing and other productive productive activities. And there is a fundamental point that must not be lost in our discussions. The health of the loan portfolios of our banks is closely connected to the health of the economy itself. A healthy economy generally produces healthier businesses and healthier loans. A struggling economy produces struggling businesses and struggling businesses often produce struggling looms. Put simply, a failing economy will eventually produce failing looms. This means that the management of the broader economy by government is pivotal to any sustainable solution to the NPL problem. When economic growth is strong, businesses prosper, businesses prosper. When inflation is contained, purchasing power is protected. When government pays its bills on time, businesses maintain their cash flows. When infrastructure improves the cost of the cost of doing business falls and when confidence rises, investment rights with it. Therefore, government cannot stand outside this conversation and simply point fingers at banks and borrowers. Government itself must look into the mirror. Government must lead by example. And ladies and gentlemen, we must be candid. Over the years, government itself has sometimes been one of the biggest defaulters in our economic environment. Over the years, government or when government contracts a road builder or supplier or consultant or another vendor and fails to pay on time, the consequences do not stop at the doors of the Ministry of Fines in development planning. Their contractor may have borrowed from a bank. That supplier may have taken credit to purchase goods. That business may have salaries to pay, taxes to meet and loans to service. So when government does not pay the vendor, the vendor may not be able to pay the bank. And what begins as a government area can eventually end up as a non-performing loan on the balance sheet of a commercial bank. The chin is clear. That is why the administration of President Joseph Newman Borai has made the restoration of government's credibility a matter of policy. Credibility with our banks, credibility with the businesses and vendors that supply goods and services to government, credibility with our development partners, and credibility with the Liberian people. Our message is simple. When this government contracts with you, government must pay you. Today, vendors doing legitimate business with government should know that when government incurs a current obligation to them, that obligation will be honored. We inherited significant leg legacy obligations and we are not pretending that those obligations do not exist. We will confront and are confronting them responsibly, transparently and within the fiscal space available to us. But even as we address yesterday's depths, we must not manufacture tomorrow's areas. That distinction is important. We must address the old depth while avoiding the creation of new depth through fiscal through fiscal discipline. Restoring the creditworthiness of government is important. Our commitment to honoring our obligations do not mere do not merely exist in speech. It is reflected in the national budget. In the current fiscal year alone, government and I say government is authority include the legislature that approves the budget. government has budgeted nearly US $235 million for debt service and we are paying and uh of this amount more than $90 million has been budgeted for dev service to commercial banks and we are paying. Think about that for a moment. At a conference devoted to the challenge of non-performing loans, it is important to emphasize that government itself must demonstrate the the repayment culture that we are asking borrowers throughout the economy to demonstrate. We cannot call upon citizens and businesses to honor their obligations to banks while government fails to honor its obligations to those sea banks and our commitment extends beyond domestic creditors. Uh madame country manager sorry for this we are budgeted in this year budget about $25 billion to for depth service to the world bank alone. I don't want to list the others, but the World Bank is the world, right? Why does this matter? Because nations like individuals and businesses live partly on credibility. When Liberia borrows, Liberia must repay. When Liberia signs an agreement, Liberia must honor it. When government contracts for goods and services, government must pay. Credibility is an economic asset. Once you lose it, borrowing becomes more expensive, investment becomes more hesitant and partners become more difficult. That is why this administration is determined to whatness of the government and government on time can pay its workers, it suppliers, its taxes and its banks. Government must therefore be credible, predictable and responsible participant in Liberia's credit ecosystem. Four areas of four areas for sustained action. One, beyond government's own obligations, I see four broad areas in which sustained action is required. First, we must strengthen the economy. government sectorled growth. A healthy credit system ultimately requires a healthy economy. Private sectorled growth must remain central to Liberia's transformation. Government can build roads, schools, hospitals, and other public infrastructure, but government cannot and should not be the employer of every Liberian. Sustainable prosperity requires businesses that invest, innovate and create jobs. Government will therefore continue working with the all partners including the judiciary, the legislature, the ministry of justice, the central bank and other relevant institutions to strengthen the legal and institutional architecture supporting credit. To conclude, I want to say that the ministry of finance as a ministry charged with promoting microeconomic stability, growth and sust sustainable development stands fully committed Ed to working with the central bank, the legislature, the judiciary and other partners to implement the reforms emerging from these deliberations. Ladies and gentlemen, the challenge is significant, but the opportunity is even greater. Let us seize it. Let us make government a more credible economic actor. capital presently trapped in distress assets and let us redirect that capital toward farms, factories, businesses, homes, ideas and enterprises that can transform Liberia. May this conference therefore produce not merely recommendations but reforms, not merely commitments but implementation, not merely discussion but lasting transformation. And may we leave here determined to build a financial system that does not merely keep money in banks but post money to work. for the Liberian people. I thank you and I wish this conference every success. Thank you very much. The Minister of Finance and Development Planning, Mr. Gustin Cornform very pointedly and he was you know at some point I thought it was the uh president of the Liberia Business Association you know giving a remark here but he was he was very forceful and he was honest in identifying the problems and one of those key problems is government's own responsibility in settling its obligations >> and that's What I'm impressed with the honesty of the minister that he's one of the probably the biggest defaulter. But he didn't stop there. He didn't stop there. He said and that he's making a pledge in the budget of $200 million for which I think he deserves another round of applause. >> Yes. Yes. But in that $200 million, he also said that we as we settle today's debt, we must not incurred future debts. I'm I'm paraphrasing him, you know, but very very good delivery and it takes someone with guts that honesty to say what the minister said and we want to just thank you very much minister for your honesty. >> Okay, we do have in our midst, it is important to note that we have in our midst our development partners. They've been observing us from a little distance. Now they are seeing our seriousness. We have a whole range of them here today. We have the country manager the the World Bank country manager. We have the resident representative of the international monetary fund well and also the shade defair of the US embassy as well as the shajair of the European Union. These now know these our development partners now know that we are serious and so when we approach them having witnessed our seriousness I'm sure they will let us or helping hand I don't just mean loans or money but technical assistance as well about how to reduce our non-performing loans having said that I'll invite here to give special remarks one of the most important development partners, the country manager of the World Bank, Madame Georgia. >> Let's put give it up for Madame Georgia, please. >> Thank you. I'm doing better today. >> Very good. Thank you. Good afternoon, Your Excellency, President of the Republic of Liberia, Honorable Speaker of the House of Representatives, Honorable Executive Governor of the Central Bank of Liberia and Leadership of CBL, Honorable Minister of Finance and Development Planning and members of the Cabinet, Honorable Member members of the uh or representatives of the legislature, judiciary and government of Liberia, leaders of financial institutions and the private sector development partners. Ladies and gentlemen, on behalf of the World Bank Group, thank you for the opportunity to join you this afternoon. The ambitions of this event go beyond tackling the persistent challenge of non-performing loans in Liberia. Today is about spurring collective action to nurture a financial system that can pro provide affordable, appropriately structured, long-term credit to productive businesses across Liberia. This is key for the economic transformation ambition of the arrest agenda for inclusive development and it is also at the heart of World Bank Group partnership with Liberia which focuses on building foundations for more and better jobs. Resolving NPL's is not only a matter of financial stability. This is central to Liberia's growth and employment agenda. The World Bank supported 2026 financial sector assessment helped identify the scale and nature of the NPL challenge in Liberia and honorable Governor Seamway uh and honorable minister Gaffwan raised many of them. Non-performing loans accounted for 19% of total loans at the end of 2024, which is four times higher than the credential benchmarks and the subsequent decline owed mainly to write offs and restructurings rather than to cash recoveries. Loanto deposit ratios hover around 35% because banks have little incentive to lend. High NPLs weaken bank profitability and reduce lending capacity. And this is where the rubber kind of hits the road. The consequences are visible at the firm level. Last year, nearly 40% of surveyed Liberian businesses pointed to lack of access to capital to finance as their single biggest challenge. This is up from 30% a decade ago. These constraints um are interconnected and they can only be resolved in a comprehensive manner. And so we want to really honor and congratulate Central Bank of Liberia, Ministry of Finance and Development Planning, Government of Liberia for really shining the light on this challenge and moving very decisively to unlock opportunity for Liberia by addressing it. As we uh move into uh the this uh excellent 3-day gathering, we want to highlight four priorities for consideration by Liberian policy makers and all stakeholders. First, as mentioned by Minister Gaffwan is about building an ecosystem of trust. The financial sector assessment highlighted the need for uh reliable borrower identification, fuller reporting of existing obligations, repayment behavior, etc. And the government's ongoing agenda to modernize credit reporting systems, strengthen data quality um and more uh will be essential to tackling this. We also uh want to acknowledge that last week's launch of the enhanced collateral registry is an excellent step in addressing this as well. Second, address both sides of the credit relationship. Financial institutions need to strengthen underwriting governance related party controls and the management of uh concentration risks. The government also has a vital role to play by validating and addressing legitimate payment arars and strengthening commitment controls. Third, recognize and resolve distressed assets quick swiftly and transparently. Fourth, link financial stability to deeper and more inclusive finance. The test of reform is not only whether NPL's the NPL ratio falls but whether viable micro small medium enterprises across Liberia including womenowned businesses agri business and uh firms outside of Monrovia can gain access to the financing that they need. the World Bank group and that is the World Bank, IFC and MIGA is actively uh partnering with Liberia on this agenda. I just want to share a couple of highlights that are encouraging. the Liberia Investment Finance and Trade Project, which is led by the Ministry of Commerce and Industry and Central Bank of Liberia, um is financing uh it's a $40 million project, but it includes a $6 million line of credit facility that has performed very well, reaching 253 MSMES across Liberia, 64% are womenowned and collectively they employ uh over 3,600 librarians and since accessing finance under the line of credit uh nearly 500 librarians have found employment. So this is an example of what's possible and the direction that Liberia is heading in. Second, IFC is implementing um work to uh support technical work to support upgrading the policy and regulatory framework for secure transactions, expanding digital credit and agent banking, and using the local champions initiative to prepare promising Liberian firms for long-term finance and investment. Finally, MIGA, the multilateral investment guarantee agency, uh has provided an $81 million uh guarantee for Orange Liberia, which is helping to expand telecommunications and mobile services, including and especially to underserved communities. So in closing, we just want to um acknowledge uh that Liberia is already moving very much in um a decisive direction to tackle NPL's. Uh the honesty, the cander will make a huge difference and uh we look forward to working with you for unlocking finance for Liberian businesses countrywide. Thank you. Can we Can we give our country manager another round of applause, PLEASE? She made some very sillient points that we should look forward to cooperation from the World Bank as we move in this direction. >> With that said, >> our next speaker is Mr. Joel Chidu Ok, resident representative, International Monetary Fund. Mr. Ok, please give it up for him. Oh, okay. We have instead the shaj affair at the US embassy. I met him not long ago. Mr. Joseph Zadrusi Mr. Joseph Zadi Zadrusi I think I think I did well. >> Maybe I didn't do it well. Say he say >> you had it right the first time. Thank you very much. >> His Excellency President Bokai, Mr. Speaker, Mr. Governor, uh distinguished ministers, honored guests, colleagues from the banking sector, the judiciary, and our development partners. Good afternoon. On behalf of the United States government, thank you for inviting us to join this important conversation. The data on on non-performing loans makes clear the scale of the challenge Liberia faces. Rather than repeat the diagnosis this morning, I would like to offer a perspective drawn from the United States own experience confronting distressed loans and assets and in particular what we learned from about moving from recognizing a problem to resolving it. The United States faced its own periods of serious financial sector distress during the savings and loan crisis in the 1980s and the early 1990s. We learned that troubled access assets do not simply disappear with time. They require recognition, transparency, and decisive action to resolve. The lessons for Liberia The lesson for Liberia is to recognize that every financial system must have a cred have credible mechanisms to address distressed assets and return capital to productive use. To be sure, the United States and Liberia are very different economies. The scale is different, our financial systems are different, and the solutions that work for us cannot simply be copied and pasted here. But the principles of a functioning credit system are not different. Lenders need reliable information about borrowers. Contracts need to mean something. Creditors need predictable ways to recover legitimate debts. Distressed assets need a path towards resolution. And borrowers need confidence that the rules are fair and consistently applied. Those principles matter whether it's an economy measured in millions, billions, or trillions of dollars. That is the lesson from our experience that I believe is relevant for Liberia. Recognizing a problem is not the same as resolving it. And delay is a has a cost. A bad loan sitting unresolved on a bank's balance sheet is not simply an accounting problem. It affects the next loan that the bank is willing to make. Uncertainty about whether a contract can be enforced affects the next investors considering Liberia. Incomplete information about borrowers affects the next entrepreneur seeking capital. That is why resolving non-performing loans and expanding access to finance are fundamentally connected. And that is why the United States believes the conversation happening over the next three days should focus relentlessly on implementation. What would that mean? It means building credit information systems that allow banks to distinguish good risks from bad ones. Better credit information, however, only works if financial institutions are reliably established. It can reliably establish who is borrowing. A reliable national identification system can help lenders verify borrowers and track credit relationships across the financial system, making it harder to obtain credit under false or multiple identities and strengthening regulatory oversight. That is another piece of the infrastructure needed to support responsible lending and a healthier credit culture. It means commercial disputes and insolveny cases can be resolved predictably and efficiently. It means creating mechanisms through which distressed assets can actually be restructured, recovered or sold. It means banks doing their part, strengthening underwriting and risk management so that today's solution does not simply become tomorrow's new generation of bad loans. The United States has been working with Liberia these foundations. The US Department of Treasury will soon complete a three-year technical assistance engagement with the central bank supporting financial sector reforms, including failed bank resolution and development of a deposit insurance framework. But there's another reason the United States cares about this. When I speak with an with American companies considering Liberia, they not only ask about what are the opportunities. They're asking whether contracts will be enforced, whether financing is available, whether local partners can access capital, and what happens when a commercial relationship goes wrong. Those questions matter to Liberian businesses, too. A financial system in which lenders have confidence to lend and investors have confidence to invest is infrastructure every bit as important to economic growth as roads, ports, and electricity. So my hope for this conference today is simple and in line with the governor's. Do not leave with another diagnosis. Leave with assignments. Who will modernize the credit information system and by when? What changes are needed to accelerate commercial dispute resolution and who owns them? What requirement what is required to establish a functioning mechanism for distressed assets and what happens next Monday to move it forward. Name the responsible institutions, name the leads, set deadlines and report the results. The United States will continue to be a partner in this work, but ultimately success will be measured by when a Liberian entrepreneur with a viable business can walk in capital loan capital needed to grow. That is the outcome we're working towards. Let us use these three days from diagnosis to execution. Thank you very much. THANK YOU very much. Let's give him another round of applause, please. And I I look forward to the day that I can walk to the store and ask for some boring and they can just swipe in my ID card and tell me, "Nope, it's a bad idea. You're not qualified for this credit because you have a bad credit." We look forward to that. I know it will not be in the next 5 years or so, but somehow we're getting there. Five years too long. Too long, right? Okay. I think I'm being too overly optimistic, but I know we'll get there someday that when you go to credit, you go in a store, they just ask you for maybe your national ID card or your license and plug in a computer, they will tell you, "No, you're not qualified for that credit." We getting >> or you okay or or you are qualified for that credit. So So let's make it positive. Are you qualified? No. But looking at the trend okay then we can say I agree with you better, right? All right. Let's put our hands together as a welcome to the podium. Mr. Zultan you can hear my voice I'm not sure of this let's welcome the charged affair of the European Union to Liberia put your hands together please m is Mr. Zen Z here. No, he's not here. Let's move on. >> What about Mr. >> No, don't don't even inter don't just do it like that. We have in the house also one of Liberia's most important citizens. >> Okay. Yeah. >> The honorable minister of justice. You know we it's very important what you know mother the speakers came up here talk about the role that the judiciary will have to play in this the role the government has to play. >> So that's why we are excited when we hear for someone like the minister of justice. So please put your hands together as well by Mr. Nu Oswald to Senior Anthony attorney general of the Republic of Liberia. >> Welcome sir. >> Good morning to all. Good morning, >> President Burka, the executive governor officials of the central bank of Labira, Mr. Speaker and members of the leg present, esteemed members of the judiciary, members of the diplomatic clubs, Minister Gafuan and other cabinet members here present, our multilateral and bilateral partners, representatives of financial institutions, members of the business community, fellow lawyers, distinguished ladies and gentlemen, I wish to commend the central Bengal bureau for placing the issue of non-p performing loans on the front burner of our national economic discourse. Nonperforming loans represent a menace with the propensity to financial institutions which which will inevitably have a ripple effect on the nation's economy. When financial institution are saddled with high levels of non-performing assets, finances that could otherwise be deployed for productive learning are in trap. This leads to limited access to credit and creates a broader financing challenge. When businesses can access finance, it is not surprising that they might dry out or die out. In turn, the economy would not grow. Job creation will be an illusion. Poverty reduction will be standby. Tax revenue will decline and the entire economic fabric of our nation will be weakened. Beyond the e economic implications, there is a dimension to this challenge that is particularly relevant to my presence here today. The banking sector of Liberia operates within a heavily regulated environment. To see no performing loan levels at this height is therefore not only an economic issue. It is also a rule of law issue. That is why the Ministry of Justice is excited about its participation in these deliberations over the next few days as we collectively seek stakeholder driven solutions to the non-performing loans challenge within the old action aim of mitigating credit risks. My brief remarks at this opening ceremony will focus on the third theme of this conference assessment of the legal regime commercial code insolvenency and collateral enforcement for depth enforcement. In this connection I will discuss three connected issues. First I will examine the laws of books that enable debt recovery and collateral enforcement. Second, I will consider the practical application of those laws and the difficulties encounter in moving from judgment to actual recovery. There I will examine banking practices particularly the structure and administration of loans that may contribute to or increase the risk of non-performing loans. Due to the bravery of time, I would not touch upon insolveny which shall be which I believe there will be surplus time during this discuss that. So now let's look at a legal framework article 25 of Liberia's constitution provides that quote the obligation of contract shall be guaranteed by a republic and no laws shall be passed which may imper this right unquote. This constitutional protection is of paramount importance because non performing loans under discussion derived from voluntary agreements between natural or juredical persons. Article 25 effectively. Article 25 effectively establishes a constitutional mandate upholding the binding force of these obligations, issulating them for arbitrary legislative interference. Consequently, the terms, conditions, and stipulated D4 remedies within these loan facilities are secen provided they do not contravene understanding laws of the republic. The enforcability of these loan agreements is therefore not merely a matter of commercial convenience. It rises to the level of a constitutional imperative under article 25. Once the contractual obligation is established, the next question is where a creditor may seek enforcement. Article 26 of the constitution addresses this directly. It guarantees that I quote anyone injured by an act of the government or any person acting under its authority whether in property contract thought or otherwise shall have the right to bring suit for appropriate redress. Tactus title 17 of the Labor code of laws revised specifically chapter 4 section 4.1 created the depth code in section 4.2 Two, confer upon eight jurisdiction debt matters in the amount of 2000 2000 one $2,0001 and above US 2000 and below collection s reside with the ministerial codes. It is important to make this distinction because there are non-bank financial institution that cater to small and medium enterprises and do have recovery challenges precisely within these lower amounts. Over the years it became clear that the debt code was inundated with debt cases. As a result debtors enjoy what was effectively a long holiday. It was a blessing disguise for a creditor simply to sue a detor before the court since due to the crowded deter anytime soon. This reality bred a culture of somewhat impunity among borrowers who calculated that a legal process itself will shield them from accountability. Then in 2010 when the commercial code was revised the commercial code were established to am and more other commercial matters here cases of debt for us 15,000 above the the commercial code with this three judge bench became a savior the three judges could each hear separate cases of up to a million United States dollar in value with all three sitting in bank in a case of more than a million United States dollars. in value. As it relates to having a secure loan transaction, the commercial code secure transactions framework allows financial institution to take collateral to secure loans they grant and to record those security interest in the collateral they they acquire. The center for national documents and records agency is a register which is now butress but the enhanced collateral registry that was launched last week by the CBL. Properly established security interest may create a preference over other holders of leans in the collateral depending on the circumstances. It is also worth noting that CBI regulation that is the regulation concerning potential regulation for asset classification provisions for loan losses and suspension of interest on non-performing loans and advances which sets strict thresholds for the ratio of collateral value to the to the outstanding loan exposure. On section four of this regulation, the CB defines what constitute well secure collateral and imposes critical limitations. When a loan is granted to a borrower and the borrower defaults that default is defined by the same credential regulations. It categorizes default based on the number of days a borrower has failed to amatize a given mual installment and prescribes what the financial institution should do in terms of provisioning to observe the risks as it relates to enforcing or recovering the debt. The civil procedure law provides for a financial institution to file an action of debt while at the same time praying for provisional remedy. Section 7.1 of the civil procedure law allows a financial institution to sue a delinquent borrower by attachment, garnishment or arrest depending on the circumstances. These remedies serve different purposes and are subject to the conditions imposed by law. The financial institution could also file a straightforward action of debt and await the outcome. If the loan is collateralized, which ought to be by CBL's standards, the financial institution could also elect to foreclose the mortgage created on the property. The important point is that the law does not provide only one method of recovery. It provides different legal rules through which a creditor may seek to protect assets, obtain judgment and realize the value of a debt. The legal framework does not end when judgment is entered. It also governs the deptor's request for deferred payment in the circumstances under which and appeal may delay enforcement. When a judgment is rendered by a court, the defender dep often seeks defer payment which in the eyes of the financial institution may undermine its opportunity for speedy recovery. But the law is clear on this point. Section 44.22 22 of the civil procedure law provides the exclusive mechanism for deferred payment of money judgments. A judgment director may apply to the code for leave to pay the judgment installments but the court shall grant the application only if three conditions are strictly met. One applicant has no assets available for immediate payment. Two, the applicant pays 25% of the amount due on the judgment immediately. And three, the applicant files a bone to the effect that he will faithfully comply with the court order to pay the judgment within the time specified and we pay interest on the own pay balance at a rate of 6% per finally for exhausting the legal framework on debt enforcement and miss the constitutional prescription that makes the right to appeal invalidate which has been interpreted to mean that once an IP is announced and perfected the judgment of the trial is still pending the account of the Pee in that matter if that matters. However, the most stringent rule applies for judgment arising from depression code the perfection of of an appeal is conditioned upon the appellent deposit depositing the full judgment the false judgment sum into an escro account. This requirement ensures that a pursuit of apply review does not become a tool for delay depriving a creditor of the fruits of a valid judgment. With all such a deposit, the judgment remains enforcable and the deptor cannot evoke the penency of an appeal to avoid payment. Now that look at the practical application of the legal framework. Having identified the legal tools available to financial institutes, let me now turn from the from the law on the books to the practical operation of the laws. One of the most frequent heard complaints of banks is retress through the courts, the speedily and timely education of cases, the timely enforcement of court rulings among others. I noted earlier that the darker of the d the depth code was ced and adjudication of cases appears slow. Let me be clear adjudication of individual cases was not inherently slow. Rather due to the volume the volume of cases on the docket any given case may not be called sooner because there were other cases before it that had to be heard. This backlog phenomenon is not unique to lab bureau. You conduct a survey in the sub region and you will see similar patterns. I also noted that the commercial code were established in 2010 to among other things ease some of the burden from the depth code. But 16 years down the rule the commercial code had developed his own share of a credit. Unlike his earlier years when he had fewer fewer cases, the daily and weekly addition of new cases to the unresolved cases now post it in the general characterization of being slow. Moreover, the commercial code is not only dealing with debt. It also deals generally with disputes flowing from commercial transactions further expanding its workload. Therefore, the situation seems not to have improved. Recall that I mentioned that a financial institution could fire it a debt by attachment, garnishment or arrest depending on the different circumstances. In each of those instances, the complaining financial institution must fire a bone to kill any damages that may occur by virtue of the coast's attachment, garagement or arrest. If the financial institution does not prevail, that bond that bone becomes that bond comes with a new cause added to the effect of the delinquency of the defendant borrower. Though the B cause could be added to the cost of the proceeding and thereby included in the judgment sum, it is a cause the financial institution must underrite up front. This increases its cost to income ratio and effective profit and loss statement or profit before tax whichever way one looks at it. Additionally, let us assume that a financial institution sues by way of attachment. The financial institution identifies the property in which it holds a security interest or simply identifies no property at all in which case the rate is issued and placed in the hands of the sher to serve on the defender to show property of the value to be attached. Failing which the defendant may be brought before the court until a property of value identified and attached. The bone has already cost the financial institution money. When a rate is served and properly identify and attach, the defender can also file a bond to vacate the attachment. If that is done, the financial institution is backed to a to a plea action of debt in which the defending detor faces no immediate pressure. Precisely the outcome the financial institution were trying to avoid by filing the action with attachment in the first place. So you can write back to square one. When the case is finally adjudicated and rule against the deptor, he or she may still not be able to satisfy the read execution. In that case, the financial institution by reasonable thing that assuredly that provided that bone most likely insurance company may be served a real execution to pay the judgment sum in of the judgment deps failure to pay. No, we have seen instances where it was determined that a financial institution can only bring in the shity through a separate action for breach of contract since the bone profile was a contract. This means the financial institution goes again to file an action for damages for breach of contract. When the financial institution wins, the shity takes an appeal to the Supreme Court. This is a breach of contract, not an action or debt. So it perfected a P stays enforcement. Let us also assume that a property was attached and remain untach until final judgment. The judgment dep has no means of perfecting appeal. So the judgment must be enforced. The court orders the auction of the attached property. The financial institution must honor write the cause of newspaper publication for four weeks in a paper general circulation. That is the cause of the financial institution. On the day of the auction, the court sets the flow price. The sher commences the auction. In most instances, no one is present to bid or the biders cannot afford the minimum price. That auction ends with all sale. The next auction must still be published at the expense of the financial institution. Sometime a bid pays a good price but fails to pay the price within the time specified. The property must then go back to ashion at the expense of the financial institution. Yet again as to the collateral itself there are many things to say about it which time does not permit me to elaborate upon fooling. Their collateral might be non-existent. It may have been pledged to another bank previously. Meaning the judgment creditor or financial institution may not be fresh in preference for settlement. It may be deployable condition no value. Any of these circumstances compounds the recovery challenge. The financial institution could elect to proceed by way of forclosure of the mortgage. But our route is even longer. The institution by far is petition before the civil law code which had general default judation over civil cases and as such carries a greater darker than a depression code. Alternative the petition will be filed before a circuit code in one of the counties. Besides that, since the foreclosure action goes after the property directly rather than the depth, the judgment of the court is subject to appeal which st the enforcement of judgment upon perfection. I would like to close but not exhaust the practical applicability of the law defer payment. While it is true that a loan deferred payment requires 25% offer on the judgment sum followed by payment of the balance within 12 months back by a bone and and an acceleration clause financial 24 or 32 months and no bone whatsoever. When the judgment director makes the upfront payment, sometimes he or she does not pay any of the subsequent installments. When that happens, the financial institution goes back to court for a execution creating another cycle of the store enforcement or judgment. This shows that the financial institutions sometimes undermine their own recovery by negotiating terms that the law would not have allowed the detor to obtain from the quota. Now I look at banking practices. My third and final point concerns banking practices and loan structure that could also be contributing factors on appealing non-performing loans. As former president Chamber of Commerce, I consider myself particularly suited to speak on this matter for I know full well what businesses are saying regarding the repayment of their loans. Some say that the tenure of the loans is too short. Others say that there are in almost all cases no moratoriums on repayment to leave room for the loan to contribute to the business before repayment obligations commence. As a result, in some instances, borrowers use the loan proceeds to amatize the loan. It is not the only contributing factor from the financial institutions. The business community is represented at this conference and they will have the opportunity to speak more extensively on these concerns. I am glad that their experiences will be heard alongside the perspectives of the financial institutions, the central bank, the the judiciary, lawyers and other stakeholders. Let us discuss this issue with honesty and with the view of finding genuine solution to the norm performing loans because regardless of the causes the impact on the economy is rare and the consequences of inaction are too severe for us to ignore. Many thanks again to the central Bengal bureau for the launch of the enhanced collateral registry which will aid enforcement against collateral Thanks also for this great initiative and to everyone who has come to contribute to this discussion. Thank you. Thank you very much honorable to >> thank you so much honorable uh I'm sure you will all agree with me that the honorable minister has touched on very very important issues issues that we cannot even delve into in much detail. too much food for thought. But I assure you, we are allocating a day to go into those details to exhaust them. We are empaneling a team of experts tomorrow and we'll also have on hand the retired chief justice Sienna Yo to delve into these issues and find practical solutions to these issues. So what the honorable me minister said was only a teaser for what is to come tomorrow. So please come tomorrow because there's a lot of stuff in tomorrow's uh session day two. >> Well and thanks again to the to the to the minister. My my only little concern maybe I should not say concern is the fact that the finance minister talk about the debt that uh the government holds the businesses and this sometimes contributes to um the bad loans but but I didn't hear anything in the presentation talk about when government owes you how from also results into bad debt. The government owes you, you cannot pay the bank. And they say in Liberia, you cannot take government to court. So I was thinking perhaps in between them we will find something that could address this where someone will say you can't take government to court and government owes me. So that's I think an issue during the panel discussion that needs to come. >> We'll discuss that tomorrow. So on that note, please put your hands together as we welcome the honorable speaker of the House of Representatives, Honorable Co. >> Welcome. >> Thank you. >> Thank you so much, Mr. President. Executive Governor of the Bank, Honorable Ministers of Government, Judiciary, Member, Your Present, Member of the Diplomatic Core, Development Partners, of the Banking and Financial Sectors, Representative of Private Sector, distinguished case, member of the press, ladies and gentlemen. Before I move into my prepared text and remark, I want us to take into consideration the remarks from the trusted minister and the finance minister. These are important issue the they brought forth to today's panel. We hope that uh the technical team that set for this conference conclusion will take into consideration these these remarks. They're very important. You know, normally when you submit laws or legislation to us to enact, we are not technocraph. We don't understand the detail of these things you submitted to us. So if you prepare something already fixed in spite of all the discussion we have, we still bought down to the same non-performing loan increasing your daily basis. So the issue that been discussed here need to be taken into consideration by the technical team and don't leave any portion out. Even during public hearing when you submit the legislation to us during public hearing too that are good things said but sometime when you have already mind set with note of let submitted to us then you leave all those things as well then we fall back to the same thing. That's why every time we pass law, we go back to amend to amend to amend because we didn't take these things into consideration. I hope this technical thing we taking serious note of what is going on here and please don't make our work so difficult. Thank you so much. I say good afternoon again to everyone here. It's an honor and privilege to join you at this important national conference on the resolution of non-performing loans in Liberia. I commend the Central Bank of Liberia for convening this time gathering as our nation works to accelerate economic transformation, expand opportunities and unlock financing for businesses that create jobs and drives prosperity. As a representative of Liberian people, we take this matter seriously and express our full support for this initiative. Distinguished participant, the challenge of non-performance loan is often viewed as a banking sector issue. In reality, it is a national development issue. Every non-performing loan represents capital that cannot be redirected into productive investment. Behind these loans may be a struggling business, an entrepreneur unable to expand, a farmer without adequate financing, or a young Liberian whose opportunity for employment or enterprise has been delayed. One thing I learned in school or we are we from a farmer's background when they talk about insolveny and they say one of the solution in uh solving in solveny is to go and follow credit imagine how it sound but anyway I hope you understand what I'm saying that when you owe it already and then one of the remedy to make you serving is to for credit. You already owe you can't pay. And the book tells us that one of the remedy to solve insolveny is to credit on the long term. It makes sense when they say longterm now. I think it makes sense. High level of impaired assets may make banks more cautious, constrain credit, increase borrowing cost that affects businesses, family and the wider economy. They can also threaten financial sector stability, expose depositors to greater risks and create sufficient fiscal pressure. Liberians or Liberia's MPL challenge has no single cause. It reflects economic shocks, weaknesses in credit infrastructure, enforcement gaps, deficiency in legal processing, governance challenges and border limitation without financial ecosystem. The legislature commend central bank and its partner for confronting these challenges. Sustainable solution however will require strong collaboration among government, regulators, financial institution, the private sector, development partners and borrowers. Ladies and gentlemen, the legislature has a critical role to play in this venture. A sound financial system require a strong legal and institutional framework. Investors, lender and borrower must have confidence in that contracts that we honor that will be honor obligation fairly enforce and dispute effectively resolve. As lawmakers, we must ensure Alabura's legal framework meets the reality of our time. This include strengthening laws on secure transactions insolveny, collateral enforcement, credit information, sharing, digital finance and commercial dispute resolution. We must also promote responsible borrowing, responsible lending, transparency and accountability throughout the credit cycle. The House of Representatives stands ready to work with the central bank along with the Senate, the judiciary, the Ministry of Justice and all relevant stakeholder to support this reforms that strengthen credit markets, improve depth recovery, expand access to finance and enhance financial sector stability. Economic development require a healthier financial system and healthier financial system require effective laws and credible institution. Distinguished participant as we pursue these reforms we must keep one objective firmly in view. Expanding access to finance. The answer to our nonperforming loans cannot simply be less lending. Our goal must be better lending. We must build a financial system that support micro, small, medium-siz enterprises, empower women and youth le businesses, finances, agriculture and housing, encourages entrepreneurship and expand opportunity across Liberia. Financial inclusion and financial stability are not competing objectives. They are mutually reinforcing poles of sustainable development. At this time or at the same time stronger economic growth will improve loan performances, stronger businesses, vibrant value chain, improved infrastructure, timely government like the finance minister said and a predictable investment environment will strengthen borrowers ability to meet their obligations. The agenda is therefore closely aligned with Liberia's border development expiration and the arrest agenda for inclusive development. Ladies and gentlemen, the sourc of this conference is not would not be measured by our speeches, presentation or communicative. It will be measured by implementation. It will be measured by stronger laws, better debt recovery mechanism, modern credit infrastructure, responsible lending and responsible borrowing. Most importantly, it will be measured by whether more Liberian businesses can access financing that enable them to grow, create jobs, and contribute to national prosperity. The House of Representative pledges it support for initiatives that strengthen the resilience, stability, efficiency and inclusiveness of Liberia's financial system. Let us all take this opportunity to build conscious around reforms that unlock credits, encourage investment, promote entrepreneurship and job creation, and accelerate national development. Together we can build a financial sector that does not merely manage breaks but effectively drives Liberia's economic infrastructure and reformation. As I conclude, let me commend the board and members of the Central Bank of Liberia for the leadership and effort to strengthen and transform our financial systems for the betterment of all Liberians. On behalf of the House of Representatives and the Legislature, I wish we just confirm every success and look forward to practical and measurable outcomes from your deliberation. May God continue to bless the watch of the people of Liberia. Thank you so very much. Thank you, Mr. Speaker. Mr. Speaker of the House of Representatives and members of the National Legislature, Mr. Minister of Finance and Development Planning and other members of the President's Cabinet. >> Okay. >> Members of the Diplomatic CP and representatives of international organizations and development partners, Mr. the executive governor of the Central Bank of Liberia, the chairman of board of governors and heads of other banking institutions in Liberia, representatives of invited foreign banking institutions, business executives and business leaders, representatives of civil society organizations, s distinguished delegates, all other invited guests, members of the electronic and print media, distinguished ladies and gentlemen, on this occasion of the opening of the national non-performing loans resolution conference. I have the honor at this time to present to you his excellency Joseph Numar Bai Senior President of the Republic of Liberia who will deliver the keynote address. Mr. President I know you've been sitting for so long. >> Thank you. Please have your seat. Goodbye. Mr. Speaker, of the house. It was of the judiciary here. It is a governor of the board of central bank and other governors. the former governors, the representative of our sister central banks that are here, representative international monetary reform, the web bank group, African bank, FC and other development partners, leaders of the financial institution and the private sector. Distinguished guests, ladies and gentlemen, I'm pleased to join you today for the opening of this important national conference and the resolution of the non-performing loans. Let me commend the central bank of Liberia for bringing us together to confront this issue. It has serious consequences not only for our banks but for the growth and the development of our country. I also want to thank the development bank partners, the banking community, the legislators and the judiciary, the private sector and all stakeholders participating in this conference. Quite often when banks and lending institutions talk about nonperforming loans, the discussion can all easily become technical. They talk about the banks balance sheets, distressed assets, collateral, credit risk and insolveny. But this issue in my view is really about people. People. It is about a Liberian farmer who needs financial financing to expand production. It is about a young entrepreneur with a good business idea but no access to capital. It is about a Liberian business that want to expand, hire more people and contribute more to the economy. It is also about depositors whose deposit must be protected. However, this is a two-way street with obligation on both sides. When too many loans go unpaid, the money that should be circulating through the economy become side up. Banks become more cautious about lending. credit becomes more difficult and expensive to obtain and ultimately businesses, entrepreneurs and ordinary Liberians pay the price. That is why the theme of this conference resolving nonperforming loans to unlock access to finance for private sector group and job creation is both timely and important. This is not simply a bank problem. It is national development challenge. Our Irish agenda for inclusive development seeks to create jobs, expand opportunities, empower young people, women, strengthen agriculture, food security, improve infrastructure, and grow Liberian businesses. We cannot achieve these objective without a strong healthy financial system prepared to finance productive economic activity. As I was coming here and I had seen the inclusiveness of this discussion, it dawn on me more and more. I usually say when the finance ministry reduce your budget to balance the national budget and leave you with a prior budget in the balance. So it becomes problem but for most system to work there must be confidence and responsibility on all sides. Banks must lend responsibly and conduct proper assessment of those to whom they lend. Borrowers must also understand that the loan are obligation that must be repaid. Contracts must mean something. Collateral must mean something. So and when disputes arise, our legal and judicial institution must be capable of resolving them fairly and efficiently. So we see how inclusive this is. Everybody has a responsibility. This is how we build confidence in our financial system. Distinguished ladies and gentlemen, the information leading up to the conference indicates that the problem of nonp performing loan did not develop overnight and it will not disappear overnight. There are weaknesses in our credit assessment and risk management. There are challenges that credit information and collateral enforcement. There are limitations in our legal and judicial process. And we must also confront the issues of financial discipline and our repayment culture. Jokingly sometimes in Liberia the song trust and no pay they say trust and no pay and we trust we have to pay. We should be candid about these problem but must also recognize that no single institution is going to solve this problem. The central bank has responsibility. Commercial banks equally have responsibility. The boros must have responsibility. Our legislators, judiciary and the executive branch must be responsible and our private sector and government partners also have important roles to play. That is why I see the the conference at more than another meeting and I don't think we've ever had a conference of this nature in this country. I don't know but this is very important. It should be an opportunity for all of us to agree on what needs to change and more importantly who will be responsible for making that change to happen. thinking about it. I've seen people who have gone to bank taking loans to uh empower their businesses and sometime we change the rules on them. It become very difficult for them to fulfill their commitment and leave them stranded. So this is an issue that all of us should be dealing with. Resolving today's non-performing loan is important, but preventing tomorrow's bad news is equally important. We must strengthen our credit reporting system, improve land administration and collateral registration, make better use of technology, expand responsible digital national services and improve our insolveny framework. The financial world is changing rapidly and Liberia cannot afford to remain behind. We must embrace innovation, but we must do so responsibly, protecting both the stability of our financial system and the interests of consumers. Ladies and gentlemen, I want to emphasize one point before I conclude. The success of this conference will not be measured by the speeches we make or the recommendations we write. It will be measured by what we do after we leave this room. Liberia has had many conferences. We have produced many good reports and recommendations, a lot of visibility studies, a lot of researches. I always say of course in life when you copy one person work is pleasure. where you copy many people that's research and so we do a lot of researches what our people need today is implementation in every sector of this society so I therefore urge you to leave this conference with clear and practical commitments assigned responsibilities Sometimes we think that matters should be deferred that deferred matters don't solve don't run countries. Somebody must take the time and make sure that solution is formed. It doesn't necessarily mean a solution will satisfy you but at least some solution is formed. You make a new move. establish realistic timeline and put in place a mechanism to monitor the implementation. To our development partners, I want to thank you for your continued support to Liberia and particularly the modernization of our financial sector. We value your technical expertise, your policy advice system and we look forward to a continued partnership and I tell our people in the government that the better we do the more people are willing to help us. So distinguished guests, we have an opportunity to build financial system that works better for Liberia. A system where responsible borrowers and accept credit. A system where lenders and with confidence that legitimate obligations will be honored. A system that provides capital to farmers, entrepreneurs, manufacturers, women and young people who are ready to work, invest, and create jobs and a system that supports the brother transformation of our economy. The challenge before us is significant but it's not beyond us. We know the problem. We have brought the right institutions together. Now we must move from discussion to action. It is therefore my pleasure on the nine day of the 9th month of 2026 to declare the national conference on the resolution of non-performing loans in Liberia financial sector officially open. May God bless the Republic of Liberia. Guide our efforts toward greater prosperity. Thank you. I think the president deserves another round of applause, please. Thank >> Thank you. And we do sincerely appreciate the president's leadership role in implementing the non-performing loans resolution conference. And we also need to remind him that it is no coincidence by virtue of the mandate given to the central bank which is to implement or to promote government's economic policy that supports growth. the arrest and one important thing is that the outcome hopefully of the non-performing loan resolution conference will create jobs which inevitably promotes the arrest program. >> Thank you Mr. Wilson. I have one or two announcements. Do we have a group photo to be taken and um the protocol people please uh try to arrange this a group photo and after the group photo and then we'll go into our first panel discussion. So the group photo uh protocol and organizers please uh come and arrange it. We press with time. So we have to do this. We have to be very sloppy about it. Those who don't have tax, don't worry. More tags have been printed and uh later on you can check to the back. You will receive your tax. The group photo of course members of the high table led by his excellency, his immediate um team and um our partners. Where are the protocol people to arrange of this please? The the photographers please come up. >> No, no. Okay. Okay. Okay. Fine. So we'll have those who will be photographed to please come up. Yeah. That includes the front row. Yeah. Yeah. Yeah. Yeah. Honorable Honorable. That's fine. >> Yeah. Honorable govern the minister. The >> Yes. >> The executive governor. Yeah. >> The front row. The front row. Everybody in the front row. Uh please come up. >> Yeah. The president will come after. So our foreign partners, >> partners, the World Bank, the Bank of >> the Bank of Ghana, Bank of Egypt, our invited central bank uh officials The board of governors of course of the deputy governors you you should be here also of the central bank central bank of Guinea of uh Ghana of Egypt up >> so you can't >> oh okay okay we we'll do that in stagesh listen uh we may have to do this in we have to do this in stages Okay. Thank you. Thank you very much. Thank you very much. >> Yeah. And please don't go away because we have an important session. The first panel discussion that will be taking place that will be immediately after the photo session. Love to have you. You have a chance. ID. So, can you hear